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Apple Inc. is a multinational technology company known for its innovative products. The company uses the FIFO (First-In-First-Out) method for inventory valuation. During the month
Apple Inc. is a multinational technology company known for its innovative products. The company uses the FIFO (First-In-First-Out) method for inventory valuation. During the month of January, Apple made the following inventory transactions:
- January 1: Beginning inventory consisted of 500 units of iPhones at a cost of $800 each.
- January 10: Purchased 1,000 units of iPads at a cost of $1,200 each.
- January 20: Sold 800 units of iPhones.
Requirements:
- Prepare a detailed inventory ledger for Apple Inc. for the month of January, using the FIFO method.
- Calculate the cost of goods sold and ending inventory valuation for Apple Inc.
- Discuss the implications of using the FIFO method on inventory valuation and financial statements for Apple Inc.
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